Capital A has announce that the Extraordinary General Meeting (EGM) will be held on 14 October 2024, where the proposed disposal of its aviation business to AirAsia X (AAX) will be tabled for shareholders' approval.

These are the key step for Capital A's restructuring and to streamline its long-term growth plan across its aviation and non-aviation businesses.

Tony Fernandes, CEO of Capital A said, "This marks a transformative, game-changing chapter for Capital A. The disposal of our aviation business to AAX will allow Capital A to focus on the four core pillars that will define the future of our Group: Aviation services, MOVE Digital, Teleport (Logistics), and the Brand AA company."

The group will split its aviation flight business to AAX where AirAsia will be parked, while Capital A will be controlling the MRO business, CAPAS which will include ADE. It will also consist of the digital arm Move, cargo under Teleport and the branding unit Brand AA.

Fernandes added, "We believe this aligns with Capital A's broader strategy to diversify its business portfolio and position itself as a technology-driven company. Our non-aviation businesses will emerge from the shadows and receive the recognition they deserve, while the aviation business will transform into a new AirAsia Group, with synergies between short-haul and long-haul operations enhancing efficiency, profitability, and returns for shareholders."

The financial effects of the proposed disposal per the pro forma financial statement as of 31 December 2023 as included in the Circular to Shareholders dated 20 September, shows that Capital A shareholders' equity will turn to positive of RM649 million from a negative of RM8.8 billion. We look forward to gaining the support of our shareholders at the EGM and support from RCUIDS holders at the upcoming meeting as we embark on this transformative journey for Capital A's next chapter of growth."

The meeting for the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) will be held on 14 October. Upon securing shareholders' approval at the EGM, the company will seek a court order to proceed with the proposed distribution of consideration shares to shareholders through a planned reduction and repayment of the company's issued share capital. These critical steps will enable Capital A to achieve a clean balance sheet and focus on soon submitting its regularisation plan, with the aim of exiting Practice Note 17 (PN17) status.